Brazilian bus body manufacturer, which operated plant in Portugal until 2009, now sees opportunity to resume sales
09/16/2025
Marcopolo announces on Tuesday (16) its return to the European market. The Brazilian bus body manufacturer, which operated a production facility in Portugal from 1991 to 2009, is now returning solely through a commercial operation.
Initially, the company aims to familiarize itself with the local market, which has changed since it departed from the continent, CEO André Armaganijan said. Other steps will be evaluated later.
Marcopolo will export coach bodies from Brazil to be assembled locally on European chassis. According to Mr. Armaganijan, the initial focus will be on countries where the market is familiar to this type of operation, with bodywork and chassis from different manufacturers. “We are looking at Italy, Portugal, and Spain. These are traditional bodywork markets,” he said.
The bus bodies will be exported from Brazil, but Mr. Armaganijan emphasized that Marcopolo also manufactures for export in Colombia, Mexico, South Africa, and China.
Net revenue from Brazilian exports rose 42.6% in the first half of the year compared with the same period in 2024, reaching R$424.5 million. This growth follows strong performance from the company’s overseas plants, where revenue increased 57.1% to R$1.3 billion. Meanwhile, domestic sales in Brazil fell 9.4% in the first half, to R$2.24 billion.
The CEO attributed the domestic decline to higher sales of lighter buses from January to June. These are used primarily for charters and lower-value services. He expects the mix to shift in the second half of the year, with a stronger emphasis on heavier coaches, such as double-deckers, which generate higher revenue for Marcopolo.
Mr. Armaganijan noted that the bus sector anticipates slight sales growth compared with 2024. The company does not provide formal guidance.
The improvement in international performance, through exports from Brazil or production at subsidiaries, is tied to market recovery after the pandemic, which affected travel-related sectors. “The pandemic hurt many companies, and Marcopolo ended up financially stronger,” he said.
The company plans to introduce its Paradiso G8 line of coaches to the European market, showcasing two models at an industry fair in October in Brussels, Belgium.
According to Mr. Armaganijan, only “minor adjustments” were needed to comply with stricter European environmental standards. “It’s a good step for us because we’ve raised the standard of technical requirements, which can later be leveraged in other markets,” he said.
Marcopolo exited the European market in the late 2000s when chassis manufacturers began producing complete buses. Now, the situation has shifted: with a focus on fleet decarbonization, some customers are returning to chassis-only solutions. “This creates an opportunity for Marcopolo to re-enter the market,” the executive said.
Beyond Europe, Marcopolo sees expansion opportunities in the United States, exporting minibus models from its Mexican plant. The company also holds an 8.1% stake in New Flyer, North America’s leading bus manufacturer. “We see New Flyer in a low phase, with significant potential for recovery,” Mr. Armaganijan noted.
The tariff hike imposed by U.S. President Donald Trump does not directly affect Marcopolo, since no buses are exported from Brazil to the United States and Mexican minibuses are currently untaxed. However, the executive noted a “slight slowdown in the Mexican economy” due to tariff policies, which have impacted local sales.
Exports from Brazil to the European Union also face tariffs, which, along with freight costs, were already factored into the decision to re-enter the continent. Future developments, such as a Mercosur-EU trade agreement, could create additional benefits and influence decisions on where Marcopolo will manufacture the bus bodies for the European market.
*By Ana Luiza Tieghi — São Paulo
Source: Valor International
https://valorinternational.globo.com/